Research Tax Credit Available for Manitoba Canola Growers 2019

February 17, 2020 – Farmers are entitled to obtain a federal tax credit on canola check-off deductions that are used to support Research & Development. The government allows 80% of the total qualifying research investment to be claimed as eligible for the tax credit.

For the Manitoba Canola Growers Association, only part of our R & D qualifies for the tax credits. Only research that is done by a federally-approved research facility, such as universities and the government agricultural research facilities, qualifies for this tax credit.

The rate for canola research in Manitoba in 2019 is 13.5%.

To claim the federal tax credit on your tax returns, you must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations.

The investment tax credits earned maybe used as follows:

Offset federal taxes owing in the current year;

If no taxes are owing, a portion may be refunded to you in that year, if you are an individual, or all of the credit may be refunded if you are a corporation;